SHANGHAI, Aug. 8 (SMM) –After a slump in the US stock markets on August 4th, LME copper prices plummeted again during the European and American trading hours last Friday amid a strengthening US dollar. Although the US announced on Friday evening non-farm payrolls added 117,000, better than the expected 85,000, and the unemployment rate also fell slightly compared to the previous figure, market players were still worried towards a slowdown in global economic growth and copper demand prospects. Besides, European debt problems had signs of deteriorating, adding to market bearish sentiment. In response, LME copper prices slumped, failing to pare previous losses and dropping to a low level near USD 9,000/mt. Finally, LME copper prices closed at USD 9,114/mt, down significantly USD 229/mt, and the shorts continued to dominate the market.
LME copper prices fell by RMB 100/mt to break the USD 9,000/mt level after opening, continuing to absorb the news of a US credit downgrade. The US dollar index will have limited space to move upward, which will support the low-end LME copper prices. As a result, LME copper prices are expected to move between USD 8,920-9,050/mt during Monday's Asian trading hours. In domestic market, SHFE three-month copper contract prices will open significantly down at around RMB 67,000/mt and the shorts will dampen the market further, while SHFE 1110 copper contract prices will move in the RMB 66,500-67,600/mt range.